News Release

WYOMISSING, Pa.--(BUSINESS WIRE)--Mar. 31, 2015--
Carpenter Technology Corporation (“Carpenter” or the “Company”) today
announced restructuring actions to reduce fixed overhead costs and
position the Company to drive long-term, profitable growth. The actions
are precipitated by the Company’s desire to improve operating cost
performance and the current weakness in the Oil and Gas market, and they
are part of an overall plan to deliver greater value to shareholders by
strengthening the Company's performance as a specialty alloys leader.
The Company's restructuring actions are expected to yield approximately
$30 million of annual fixed overhead cost savings and will be
complemented by additional strategies to reduce costs.

Carpenter’s Chairman, President and Chief Executive Officer Gregory A.
Pratt stated, “We are confident in the technology, manufacturing
capabilities, customer connections and employee dedication within our
Company. We are clearly disappointed with our performance over the last
several quarters and are taking decisive actions to return to the level
of operational and financial performance we are capable of achieving,
and which we and our shareholders expect and deserve.”

Expected to yield approximately $30 million of annual fixed overhead
cost savings, the restructuring plan includes reducing the Company’s
salaried positions by approximately 200 or 10% of the total salaried
workforce. In addition, the restructuring plan includes the elimination
of approximately 60 outsourced positions as well as other non-labor
related costs. The Company expects to record a pre-tax charge of
approximately $11 million in the third quarter of fiscal year 2015 (Q3
FY15) as a result of implementing this plan.

In connection with the Company’s ongoing strategic planning, Carpenter
has exited the ultra-fine grain materials development program. The
Company will record a pre-tax charge of approximately $13 million in Q3
FY15 that reflects the cost to exit a licensing agreement as well as the
associated non-cash asset impairment charges.

In addition to the restructuring plan announced today, the Company has
recently taken a series of other actions to drive long-term growth and
stockholder value, including:

Repurchased 1.2 million shares for approximately $50 million in Q3
FY15. In the program to date, repurchased 1.4 million shares for
approximately $60 million.

Targeted a $50 million inventory reduction by the end of fiscal year
2015 compared to ending first quarter fiscal year 2015 level. Further,
an additional $50 million reduction is targeted in fiscal year 2016.

Reduced targeted capital spending to $100-$120 million for fiscal year
2016.

Strengthened its “continuous improvement process” in January 2015,
with the introduction of the Business Management Office (BMO). This
in-depth improvement effort is being led by the CEO and CFO with
support provided by external management consultants. The BMO is
focused on profit optimization, operating cost improvement and
inventory reduction. To date, the efforts of the BMO have yielded
several quick wins with additional improvements in progress. Longer
term, the BMO will continue to be refined and the processes developed
as a result of this effort will be incorporated into the Company’s
ongoing operating procedures.

Q3 FY 2015 Outlook

Based on the Company’s preliminary estimates, subject to finalization
and additional change, the Company currently expects earnings per share
(EPS) for Q3 FY15 to be in the range of ($0.05) to ($0.09), inclusive of
the restructuring and other special charges detailed below.

The Company currently expects that the Specialty Alloys Operations (SAO)
segment will continue to realize benefits of an improving product sales
mix. Compared to the third quarter of fiscal year 2014, SAO revenue is
expected to be higher in all of the end markets with the exception of
Industrial & Consumer. Aerospace market revenue is expected to grow year
over year in the quarter due to increased engine and fastener activity.
Revenue in the Energy market is expected to be up slightly in the
current quarter year over year but looking forward, lower oil prices are
anticipated to have a negative impact. Medical market revenue is
expected to be up year over year in the quarter with a normalization of
demand for orthopedic and instrumentation products. Expected year over
year growth in transportation revenue is due to higher demand for engine
component materials in the current quarter. Overall, order lead times
have stabilized relative to Q2 FY15 and the key work centers for
high-value products remain at or near full capacity.

In addition, consistent progress is being made in gaining the required
qualifications for the Athens facility. Customers understand and
appreciate that Carpenter is doing what is necessary to support growth
in key markets with investments in the best technology available. The
Athens facility provides the necessary capacity to capitalize on
anticipated growth in key markets and the game changing capability to
improve the supply chain metrics of our customers.

The improved year over year and sequential SAO revenue trend in Q3 FY15
will be more than offset by higher than planned operating costs in Q3
FY15 as compared to the year ago quarter. In addition, the SAO Q3 FY15
results will include unfavorable impacts resulting from reducing
inventory levels relative to the previous quarter.

The Performance Engineered Products (PEP) segment has been negatively
impacted by lower demand primarily due to the impact of the decline in
oil prices. The Company currently expects PEP operating income in Q3
FY15 will be down 40-50% as compared to the third quarter of fiscal year
2014.

Mr. Pratt further stated, “Given the improvements in our SAO product
sales mix and consistent progress at Athens, we would have expected to
see stronger Q3 FY15 performance. The current weakness in the oil and
gas market has had a negative impact on our business and we will
continue to monitor and take the necessary actions. Our operating cost
performance remains a challenge and we are responding by taking
aggressive action in the areas of labor productivity, yield and fixed
costs. Although our inventory reduction efforts have resulted in some
unfavorable cost absorption issues, as we work to right size our cost
base, we remain committed to this important effort to improve cash
generation and our overall working capital utilization.

“Carpenter has a long and proud history that has included successfully
responding to many challenges. We have taken decisive and corrective
action to address the latest challenge. We believe the decisions we
announced today, and the actions we have initiated over the last several
months, will give us a strong foundation to deliver greater value to our
customers and shareholders."

About Carpenter Technology

Carpenter produces and distributes premium alloys, including special
alloys, titanium alloys and powder metals, as well as stainless steels,
alloy steels and tool steels. Information about Carpenter can be found
at http://www.cartech.com.

Forward-Looking Statements

This presentation contains forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ from those projected, anticipated
or implied. The most significant of these uncertainties are described in
Carpenter’s filings with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended June 30,
2014, Form 10-Q for the quarters ended September 30, 2014 and December
31, 2014 and the exhibits attached to those filings. They include but
are not limited to: (1) the cyclical nature of the specialty materials
business and certain end-use markets, including aerospace, defense,
industrial, transportation, consumer, medical, and energy, or other
influences on Carpenter’s business such as new competitors, the
consolidation of competitors, customers, and suppliers or the transfer
of manufacturing capacity from the United States to foreign countries;
(2) the ability of Carpenter to achieve cash generation, growth,
earnings, profitability, cost savings and reductions, productivity
improvements or process changes; (3) the ability to recoup increases in
the cost of energy, raw materials, freight or other factors; (4)
domestic and foreign excess manufacturing capacity for certain metals;
(5) fluctuations in currency exchange rates; (6) the degree of success
of government trade actions; (7) the valuation of the assets and
liabilities in Carpenter’s pension trusts and the accounting for pension
plans; (8) possible labor disputes or work stoppages; (9) the potential
that our customers may substitute alternate materials or adopt different
manufacturing practices that replace or limit the suitability of our
products; (10) the ability to successfully acquire and integrate
acquisitions; (11) the availability of credit facilities to Carpenter,
its customers or other members of the supply chain; (12) the ability to
obtain energy or raw materials, especially from suppliers located in
countries that may be subject to unstable political or economic
conditions; (13) Carpenter’s manufacturing processes are dependent upon
highly specialized equipment located primarily in facilities in Reading,
Latrobe and Athens for which there may be limited alternatives if there
are significant equipment failures or a catastrophic event; (14) the
ability to hire and retain key personnel, including members of the
executive management team, management, metallurgists and other skilled
personnel; (15) fluctuations in oil and gas prices and production; (16)
the success of restructuring actions; and (17) share repurchases are at
Carpenter’s discretion and could be affected by changes in Carpenter’s
share price, operating results, capital spending, cash flows, inventory,
acquisitions, investments, tax laws and general market conditions. Any
of these factors could have an adverse and/or fluctuating effect on
Carpenter’s results of operations. The forward-looking statements in
this document are intended to be subject to the safe harbor protection
provided by Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Carpenter undertakes no obligation to update or revise any
forward-looking statements.